Zastavkin/iStock via Getty Images The good: Accelerating market-share growth in Cosmetics and Skincare, while it expands internationally, along with robust digital and retail go-to-market strategies and continuous product innovation The bad: While profitability expands, ROI on marketing can shrink if demand declines from macroeconomic pressure From a profitability standpoint, assuming that the company can continue to drive targeted price increases along with inventory adjustments to improve unit economics w ...

In fact, it's even easier to triple your money if you set a lengthy time horizon. A slow and steady approach can yield better results than a high-risk, high-reward portfolio. Blue-chip stocks with immense potential tend to have a few things in common. These companies have rising revenue and profit margins. They also have tremendous long-term growth opportunities and strong demand for their offers. These three blue-chip stocks seem to fit the bill and have the potential to generate meaningful gains. Texas Ro ...

Many beauty companies are reporting pressure and declines. e.l.f. continues to skyrocket. In the 2024 fiscal fourth quarter (ended March 31), sales soared 71% over last year, with strong growth in both the wholesale business and e-commerce channels. Even more, sales growth has been accelerating over the past two years, while almost every similar company is slowing or reporting decreasing sales. e.l.f. has an edge with its lower prices, which attract more spend when shoppers have lower budgets but need their ...

Can this company keep taking market share from more mature businesses? Shares of cosmetics company e.l.f. Beauty (ELF -3.38%) were up 15% in May, according to data provided by S&P Global Market Intelligence. The stock had been dropping in 2024 because investors feared a slowdown in consumer spending in the sector. But the company pleasantly surprised them on May 22 with its financial results for its fiscal fourth quarter of 2024. It was an admittedly uneven reaction from investors. When e.l.f Beauty first r ...

The stock market provides ample ways to grow wealth. Dividends and value investing are common methods. But growth stocks can accelerate your journey to financial riches. Over the long term, earnings growth is the primary driver of stock market returns. And, the same principle applies to individual stocks. As growth companies compound revenues, they grow EPS at a higher rate as they achieve scale and show higher operating leverage. As a result, the stock price follows EPS higher. But, where do you find these ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________________________ FORM 10-K ___________________________________________________ ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-37873 _____________________________________ ...

Adjusted selling, general and administrative (SG&A) expenses were up 72.9% from the fourth-quarter fiscal 2023 level to $196.9 million. As a percentage of net sales, adjusted SG&A deleveraged 50 bps to 61.3% mainly due to increased investments in marketing and digital initiatives, higher compensation and benefits, operations costs, retail fixturing and visual merchandising, and elevated depreciation, amortization and professional fees. e.l.f. Beauty (ELF) reported impressive results for fourth-quarter fisca ...

The company just capped off a year of record growth. Shares of cosmetics company e.l.f. Beauty (ELF 20.31%) made a big move higher on Thursday after the company reported financial results for its fiscal fourth quarter of 2024. As of 10 a.m. ET, e.l.f Beauty stock was up a strong 14%. Mastering market-share growth In its fiscal 2024 (ending in March), e.l.f Beauty generated net sales of over $1 billion, which represents remarkable 77% year-over-year growth. The company appears to have mastered the art of usi ...

Financial Data and Key Metrics Changes - In fiscal '24, the company achieved net sales growth of 77%, with adjusted EBITDA growth of 101% and gross margin improvement of approximately 330 basis points [181][95] - The company ended the quarter with adjusted net income of $31 million, or $0.53 per diluted share, compared to $24 million or $0.42 per diluted share a year ago [62] - The company expects net sales growth of approximately 20% to 22% for fiscal '25, with adjusted EBITDA projected between $285 million to $289 million [98] Business Line Data and Key Metrics Changes - In Q4, e.l.f. Cosmetics grew 30% in tracked channels, significantly outperforming a category that was down 3% [16] - e.l.f. SKIN grew 38% in tracked channels, compared to a category growth of 2%, increasing its market share by 45 basis points [17] - Naturium contributed approximately 17 points to net sales growth in Q4, indicating strong performance since its acquisition [41] Market Data and Key Metrics Changes - International sales grew 115% in Q4, driven by strong performance in Canada and the U.K., where e.l.f. was the fastest-growing among the top 10 cosmetics brands [129] - The company increased its market share by 305 basis points, reaching a total market share of 10.5% in color cosmetics [181][26] - The average price point for e.l.f. products is about $6.50, significantly lower than legacy mass cosmetics brands [43] Company Strategy and Development Direction - The company plans to continue expanding its international presence, with recent successful launches in Italy and the Netherlands, and upcoming entries into Sephora Mexico [14][86] - The focus remains on color cosmetics, skin care, and international markets, with significant runway for growth in skin care where e.l.f. currently holds a 1.6% market share [27][46] - The company is committed to a disciplined marketing investment strategy, planning for marketing and digital investment at approximately 24% to 26% of net sales in fiscal '25 [29] Management's Comments on Operating Environment and Future Outlook - Management remains bullish on the color cosmetics category and expects to continue gaining market share despite macroeconomic uncertainties [100][154] - The company is optimistic about Q1 performance, expecting net sales growth to exceed the annual guidance range due to strong consumption trends [99][101] - Management emphasizes a cautious approach, taking it one quarter at a time while remaining confident in the company's growth trajectory [100][156] Other Important Information - The company has a strong liquidity position, ending the quarter with less than 1x leverage in terms of net debt-to-adjusted EBITDA [97] - The Beauty Squad Loyalty Program has over 4.8 million members, driving almost 80% of sales on the company's website [59] - The company is focused on diversifying boardroom representation through its Change The Board Game initiative [50][52] Q&A Session Summary Question: Can you provide insights on the guidance and growth expectations? - Management indicated a guidance of 20% to 22% net sales growth, building on a strong fiscal '24 performance [36][98] - The growth is expected to be unit-led, with a focus on maintaining strong market share [37] Question: How is the international expansion progressing? - International sales grew 115% in Q4, with significant demand noted in Canada and the U.K. [103][129] - The company plans to continue its disciplined rollout strategy in new markets [14] Question: What are the expectations for Naturium's performance? - Naturium is expected to have a full assortment at Ulta, and management is optimistic about its growth potential [114][165] - The brand is performing well, and the company is excited about its innovation pipeline [165] Question: How does the company view its marketing strategy? - The marketing investment is set at approximately 24% to 26% of net sales for fiscal '25, reflecting a commitment to driving growth [29][94] - Management believes that the marketing strategy has been effective, yielding strong ROI [77] Question: What are the expectations for gross margin and cost management? - The company expects gross margin to improve by approximately 10 basis points year-over-year, with some cost pressures anticipated in the first half of the year [68][127] - Management is focused on maintaining a balanced approach to cost management while driving growth [120][136]

Group 1: Earnings Performance - E.l.f. Beauty reported quarterly earnings of $0.53 per share, exceeding the Zacks Consensus Estimate of $0.35 per share, and up from $0.42 per share a year ago, representing an earnings surprise of 51.43% [1] - The company posted revenues of $321.14 million for the quarter ended March 2024, surpassing the Zacks Consensus Estimate by 9.81%, compared to year-ago revenues of $187.36 million [2] - Over the last four quarters, E.l.f. Beauty has consistently surpassed consensus EPS estimates [2] Group 2: Stock Performance and Outlook - E.l.f. Beauty shares have increased approximately 10.1% since the beginning of the year, while the S&P 500 has gained 11.6% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $1.18 on revenues of $298.99 million, and for the current fiscal year, it is $3.54 on revenues of $1.27 billion [7] Group 3: Industry Context - The Zacks Cosmetics industry is currently ranked in the bottom 41% of over 250 Zacks industries, indicating that the industry's outlook can significantly impact stock performance [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors or through tools like the Zacks Rank [5][6]